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Answer Posted / ankit
Minority interest in business is an accounting concept that
refers to ownership of a company (subsidiary) that is less
than 50% of outstanding shares.[1] Minority interest belongs
to other investors and is reported on the consolidated
balance sheet of the owning company between liabilities and
equity sections to reflect the claim on assets belonging to
other, non-controlling shareholders. Also, minority interest
is reported on the consolidated income statement as a share
of profit belonging to minority shareholders.
Minority interest is an integral part of the enterprise
value of a company. The converse concept is an associate
company.
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